OnlineAthens/Athens Banner-Heral

Expansion gives hope to rising economic tides

Government and business reporter

When $24 million takes shape in the Classic Center, it’s in the form of a covered atrium, hanging art displays and vast halls where workers on the opposite side of the room look like yellow-vest specs putting the final touches on an expansion years in the making.

“The floor in that atrium, I think will be one of the most spectacular floors in the state of Georgia,” Classic Center Executive Director Paul Cramer said.

The idea it implants in the minds of county leaders is more than its black-and-white marble design. It is the idea of thousands of guests wandering through exhibits during the day, dining in restaurants at night and filling the hotels. In short, it’s an investment that doubles the exhibit halls, adds new aesthetic to the drive and has an impact on all of Athens, Cramer said.

If each of the estimated 50,000 attendees spends about $200 per overnight stay, as estimated, new business at the convention center brought on by the expansion will have a $24 million impact within four years.

“That’s a fantastic number, because $24 million was the cost of the project,” Classic Center Executive Director Paul Cramer said while highlighting the inked deals with conventions. “... That’s $24 million that wouldn’t otherwise be here.”

The expansion is being paid for as part of a nine-year, $195 million 1-percent special-purpose local-option sales tax approved by voters in 2010.

While Athens-Clarke County Mayor Nancy Denson said she looks forward to the various festivities surrounding the expansion, it’s that extra $6 million a year in the local economy — proof of a “darn good investment” — that excites her the most.

“It’s like dropping a pebble in the water,” she said. “All these convention people don’t just stay (at the Classic Center.) They go to the mall and spend money. They go on historic tours of Athens.”

It’s a point echoed by Athens Area Chamber of Commerce President and CEO Doc Eldridge: More people in town means they’re likely out spending money.

“You can use whatever multiplier that you want, but when you have 3,000, 2,000 people coming into town, they’re staying in hotels, they’re in our restaurants, they’re in our shops, they’re buying gas,” Eldridge said.

The expansion already spurred the development of a $35 million Hyatt Hotel that will be just north of and eventually connected to the convention center. The developers hope to open it no later than spring 2014.

“Really, what it was was the renewed interest in the civic center and the expansion, and understanding enough about the hospitality market to know that there’s a need for this type of project connected and adjacent to the center,” said Robert Small III, a managing partner in the company that owns the Hyatt hotel.

Beyond that, local officials think the influx of money from convention goers could create a market shift in the downtown area, which has seen the number of bars grow from 39 in 2002 to 63 in 2012, and restaurants go from 45 to 61. A point of contention among some property and business owners there is that retail hasn’t seen the same growth.

The different conventions could bring different markets to play, Denson said, such as the United Methodists. That group had outgrown the Classic Center for its annual convention and moved to Atlanta, only to be lured back with the expansion, Cramer said.

“For the most part, (the Methodists) aren’t going to be partying in the bars at night,” Denson said. “But they do like shopping and will want to have places to shop within walking distance.”

But not all conventions will attract that sort of audience. As if to hammer home the point, Eldridge emphasized the impact visitors will have on a town that many will remember from when they or family and friends passed through the University of Georgia or visited in the past.

“That’s going to create a higher demand for more food, more retail, more nightlife as well,” he said. “It’s hard to find anything wrong with it.”

• Follow government and business reporter Nick Coltrain at twitter.com/ncoltrain or on Facebook at facebook.com/NickColtrainABH.

OnlineAthens.com aims to foster constructive, respectful civic conversation. With your help, we will provide a friendly, safe, easy to use place on the Web for everyone in the area to share not only opinions but also information of community interest. Racist, harassing, abusive and libelous comments will not be tolerated.